Zimbabwe starts trading in ZAR and USD

S

StrongTurd

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http://www.zwnews.com/issuefull.cfm?ArticleID=19504

I think they've just let the genie out of the bottle. The Zim$ will effectively cease to exist when transactions can now (legally) take place in "real" currency.

A question for the economists: What impact is this likely to have on the ZAR? I would assume that it would strengthen our currency because of increased demand?
 
I would have thought they'd be doing that already.
 
StrongTurd said:
http://www.zwnews.com/issuefull.cfm?ArticleID=19504

I think they've just let the genie out of the bottle. The Zim$ will effectively cease to exist when transactions can now (legally) take place in "real" currency.

A question for the economists: What impact is this likely to have on the ZAR? I would assume that it would strengthen our currency because of increased demand?
Click to expand...

NOOOOOOOOOOOOOOOOOOOOOOOOOOOO
 
Why the UD$? Thats the paper money of the western emperialist swine dog whites isn't it? :D
 
If a currency is in demand they print more of it which in effect DE VALUES the currency.

That's exactly what happend to the Zim Dollar. The demand for it got so high because of inflation being so high (because of several other factors) which in turn devalued the currency so much that inflation got even higher which made demand for the zim dollar even higher and then devalued it even more...

Vicious circle. but definately does NOT mean ZAR will get stronger.

If Zim wasn't a pathetic economic country that it is (who needs farms to grow food for their people right? bah, emperialist white swine dogs don't know **** <-- sarcasm) then having another "booming" economy added onto your own would strengthen it (much like the Euro etc)

But because they're a failing economy who would literally take DECADES to get anywhere close to where they were 10 years ago, I'd image the ZAR is in for a tough stint of a downfall.

This including the economic turmoil and talk of a world wide resession I'm pretty sure this will be the last nail in the coffin SA needs to go back to the dark ages and lose the 2010 world cup
 
How can a country use another's currency without the other country's consent?
 
AcidRaZor said:
If a currency is in demand they print more of it which in effect DE VALUES the currency.

That's exactly what happend to the Zim Dollar. The demand for it got so high because of inflation being so high (because of several other factors) which in turn devalued the currency so much that inflation got even higher which made demand for the zim dollar even higher and then devalued it even more...

Vicious circle. but definately does NOT mean ZAR will get stronger.

If Zim wasn't a pathetic economic country that it is (who needs farms to grow food for their people right? bah, emperialist white swine dogs don't know **** <-- sarcasm) then having another "booming" economy added onto your own would strengthen it (much like the Euro etc)

But because they're a failing economy who would literally take DECADES to get anywhere close to where they were 10 years ago, I'd image the ZAR is in for a tough stint of a downfall.

This including the economic turmoil and talk of a world wide resession I'm pretty sure this will be the last nail in the coffin SA needs to go back to the dark ages and lose the 2010 world cup
Click to expand...

How so? The USD is the world's de facto currency. Is that not one of the prime reasons why the US is a superpower? If what you say is true then the USD would be almost as worthless as the Zim$ because everybody wants it.
 
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